VMX 6.06% 31.0¢ valmec limited

If you just double revenue for the full year to $100m and...

ANNOUNCEMENT SPONSORED BY PLUS500
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM
CFD Service. Your Capital is at risk
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
  1. 818 Posts.
    lightbulb Created with Sketch. 100
    If you just double revenue for the full year to $100m and slightly increase the margin and reduce interest costs as in the guidance, then VMX earns 4 cps on the average number of shares on issue for the full year (I used 103 million). That is a PE of 9.

    That is a very conservative base given the order book of $83 million (though not it is clear how much of this will be in 2017-18) and the APTS takeover. APTS has had historical revenue of $20 m pa, but it is not clear what orders APTS currently has, or whether there will be any one off integration costs. If you assume VMX revenue of $110 million in 2017-18 then earnings rise to 5 cps and the PE is just over 7. That would make the shares still cheap.

    Hopefully VMX will provide a guide to the current order book (including APTS) when new orders are next announced. It would help if they told us what orders will be delivered in 2017-18 and in future years, if they are not going to give any profit guidance for 2017-18. Otherwise we will not really know how the company is travelling until the annual results.
 
watchlist Created with Sketch. Add VMX (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.